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Senate Holds Make‑or‑Break Vote on Revised CLARITY Act

The outcome will determine whether Congress moves first on a federal crypto rulebook or leaves regulators to fill the gap.

Overview

  • Senate Republicans released a revised 635‑page CLARITY Act that folds in roughly 126 Democratic requests and sets a procedural cloture vote for Sept. 15 to decide whether the Senate may begin formal debate.
  • The new text forces covered federal officials and their spouses with sizable crypto stakes to divest or use blind trusts and gives state attorneys general a role in enforcing those ethics rules.
  • The draft allows some stablecoin rewards but gives the Treasury secretary time‑limited 'circuit‑breaker' power to restrict rewards if they cause substantial deposit flight from community banks.
  • Advocates and markets welcomed the concessions while major banking groups, a bipartisan coalition of 17 state attorneys general, tribal leaders and some Democrats say the bill still weakens state fraud powers or leaves banks exposed.
  • If cloture fails supporters expect regulators such as the CFTC to move by rulemaking, and if cloture succeeds the Senate will open amendment and floor debate before a final vote on passage.